The City is projecting stable revenues with modest increases for the current two-year budget cycle. The City’s Fiscal Years 2011-2012 and 2012-2013 Adopted Operating and Capital Budget projects that its top three revenue sources – Property Taxes ($3.8 million and $3.97 million, respectively), Transient Occupancy Tax (TOT) ($1.6 million and $1.7 million, respectively), and Sales Tax ($1.0 million for both years) along with related in-lieu taxes ($800,000 for both years) -- will make up 69 and 70 percent of its total General Fund revenues of $10.5 million and $10.9 million, respectively. These revenues represent increases of one percent and four percent over Fiscal Year 2010-2011 projected revenues, respectively.

The City receives only 15 percent of the property tax dollars paid by residents and businesses with the balance going to the State for school funding, the County and special districts. The City receives only one percent of the 7.75 percent sales tax collected with the rest going to the State General Fund, local transportation, and public safety funding. In contrast, all of the revenue generated by the City’s 11.5 percent TOT can be used to fund City programs.

Other Revenue Sources
In addition to our top three revenues, our other major revenues are parking violations ($567,000 and $583,000, respectively), parking meter revenue ($537,000 and $560,000, respectively), franchise taxes ($338,000 and $342,000, respectively) and business license taxes ($192,000 and $196,000, respectively). All parking violation revenues remain with the City except for a $12.50 charge per ticket which must be remitted to the State. Parking meter revenue, franchise tax, and business license tax are all used towards the City’s General Fund.

Revenue Feeds Services
The City’s revenues provide funding to supply needed services to its residents, such as Sheriff services, fire protection, beach operations and maintenance, City planning and development, and streets and roads maintenance. In addition, the City’s revenues support a modest capital improvement program. For the next two years, however, the City is undertaking the largest CIP program in its history. It is managing the Federally and State-funded North Torrey Pines Bridge project, and it will shortly begin construction on the long-awaited Beach Safety Center, thanks to generous donations of the Friends of the Powerhouse, a grant from the Coastal Conservancy, proceeds of the sale of the Balboa Lot, and some additional General Fund monies. In addition, the City is well on its way to making operational the 21st Street Sewer Pump Station, funded by sewer rates and charges. The City is also focusing its efforts towards downtown revitalization through its work on the Village Specific Plan.